Common Mistakes In-House Notaries Make and How to Avoid Them
Real estate transactions are intricate, involving numerous legal steps to ensure everything is executed properly, with one key aspect of this process being notarization. In-house notaries are responsible for verifying the authenticity of the documents involved in the transaction, from mortgage agreements to title transfers. However, even the most experienced notaries can make mistakes, resulting in costly delays or legal issues.
In this blog, we’ll highlight the most common in-house notary mistakes and deliver tips on how to avoid them. Comprehending these pitfalls will help prevent mistakes that imperil your real estate transaction.
Importance of In-House Notaries in Real Estate Transactions
In-house notaries are essential to ensuring the legitimacy of a real estate transaction. They are responsible for verifying the identity of signers, witnessing signatures, and ensuring the documents meet legal requirements. Any failure to properly notarize documents can lead to delays, legal disputes, and potentially the invalidation of the transaction. Real estate professionals understand the significance of notarization, and this process ensures that the transaction proceeds smoothly and securely.
Common Notary Mistakes and How to Avoid Them
Mistakes can happen at any stage of the notarization process, so here we will go over some of the most common mistakes made by notaries and how to prevent them so that your real estate transaction remains intact:
1. Failing to Verify the Signer’s Identity Properly
One of the most frequent in-house notary mistakes is improperly verifying a signer’s identity. Failing to verify a signer’s identity in real estate properly can lead to fraud or even fraudulent property transfers. According to studies, improper identification contributes to approximately 25% of all notary fraud cases.
How to Avoid It: Always request two forms of government-issued ID to verify the signer’s identity. Always confirm that the identity matches the paper being signed.
2. Not Being Present During the Signing
A notary’s presence is required when documents are being signed. Some notaries make the mistake of notarizing a document when they were not physically present during the signing, which renders the notarization invalid. This can significantly delay the process in real estate and lead to complications.
How to Avoid It: Make sure you are physically present while signing the document. If the signer cannot attend in person, consider scheduling a new appointment or, where allowed, using remote online notarization.
3. Incomplete Notary Journal Entries
Another critical mistake notaries make is failing to maintain their journal properly. The notary journal records all notarizations completed, and a failure to log these accurately could lead to complications if a document’s validity is challenged. Studies show that up to 40% of notaries fail to maintain an accurate journal, exposing them to potential fraud and legal issues.
How to Avoid It: Always use a notary audit checklist to ensure that you record every detail of the transaction. This includes the date and time of notarization, the type of document, the names of the signers, and any other relevant details.
4. Incorrect Use of the Notary Seal
Misuse of the notary seal might invalidate a notarization. Notaries sometimes overlook checking their seal for state standards. Industry statistics show that 20% of notaries employ outdated or inaccurate seals, which might invalidate papers.
How to Avoid It: Before applying the seal, double-check that it is correct for your state and the document being notarized, and make sure the seal is up-to-date and fully legible.
5. Errors in the Notary Certificate
Errors in completing the notary certificate, such as forgetting to include the venue or failing to date the document correctly, are common mistakes that can lead to invalid notarizations. The notary certificate is a key part of the notarization, and an error in the certificate can undermine the entire process.
How to Avoid It: Always double-check the notary certificate to ensure all required information is correctly filled out before signing.
Notary Fraud Prevention Tips
These are critical for notaries, especially in the high-risk real estate area. Fraudulent activities in real estate can be financially devastating and lead to significant delays or even a complete transaction breakdown. Here are some key tips for fraud prevention:
- Verify Signer’s Identity: Always confirm the signer’s identity using a valid, government-issued ID. Do not proceed with the notarization if you suspect the identification may be authentic.
- Never Notarize Blank Documents: Never agree to notarize a document that contains blank spaces. Fraudsters can later fill in those spaces with fraudulent information.
- Remain Vigilant: Be alert for any signs of coercion or discomfort from the signer. If something feels off, it is better to err on the side of caution and refuse the notarization.
The Importance of a Notary Audit Checklist
A notary audit checklist is an essential tool for in-house notaries because it helps that all steps in the notarization process are followed correctly, reducing the risk of mistakes and fraud. The checklist can be used to verify that all legal requirements are met, from confirming the signer’s identity to ensuring that the notary certificate is complete.
A comprehensive notary audit checklist includes:
- Verifying the signer’s identity
- Confirming the completeness of the notary certificate
- Recording details in the notary journal
- Checking that the notary seal is correct and legible
- Reviewing for signs of fraud or coercion
Using a checklist helps ensure no steps are overlooked, which is especially important in real estate transactions where accuracy is paramount.
Why Sankalp Title is Exactly What You Need?
In real estate, notarization is one of the most critical steps in the process, and mistakes in notarization can have costly consequences. That’s why leading title insurance companies like Sankalp Title ensure that every notarization is completed accurately, reducing the risk of delays and legal challenges. As one of the top title service providers, Sankalp Title offers expert notary services, safeguarding the integrity of your real estate transactions.
By working with their experts who understand the complexities of real estate transactions, you can ensure a smooth and successful process. Their notary services ensure all documents are notarized correctly, preventing common mistakes that can disrupt the transaction.
Whether you are a homebuyer, seller, or investor, Sankalp Title provides comprehensive support to help you navigate the real estate process seamlessly. With their expertise, you can be confident that your documents are handled with care, helping you avoid delays and complications.
Get in Touch with Sankalp Title Today
In-house notaries are integral to the success of real estate transactions. By avoiding common notary mistakes, following notary fraud prevention tips, and using a notary audit checklist, you can ensure the smooth completion of your transaction. The importance of accurate notarization cannot be overstated, it ensures that your documents are legally valid and the transaction is secure.
To avoid the pitfalls of in-house notary mistakes, Sankalp Title is the trusted partner you need. With their expertise in notarization and title services, they provide the reliable support required to ensure your real estate transaction proceeds without a hitch.
Contact Sankalp Title today to learn more about how their notary services can benefit your real estate transactions.
